Toast nuts in 350° oven for about 5-10 minutes until lightly browned, stirring often. Set aside.

Beat cream cheese until very smooth. Add butter and cream well. Beat in powdered sugar, then vanilla. Add nuts, if desired, then frost cake or press nuts onto side of frosted cake.

If using this frosting for a decorated cake, decrease the butter by half. This will make the frosting stiffer and it will pipe well. Store cake in fridge or freezer.

Note: When my kids were small, I would make a "birthday cake for Jesus" at Christmastime to remind us all of the 'reason for the season.' This cake is so pretty and you can change the food coloring for different holidays or your favorite sports team party. Room temp butter and cream cheese plus thorough creaming will prevent a lumpy frosting.